Globalization, Urbanization, Energy Consumption, Economic Expansion and Industrialization: Pathway to Tanzania’s Environmental Sustainability Agenda 2030

Abstract

This study delves into a comprehensive analysis of interconnectedness between globalization, urbanization, energy consumption, industrialization, and economic expansion as the pathway towards Tanzania’s 2030 environmental sustainability agenda utilizing time series data spanning from 1990 to 2022. This data was sourced from the World Bank and KOF Swiss Institute. The autoregressive distributed lag (ARDL) model was utilized in this study. Unit root test, ARDL bound cointegration test, Akaike Information Criterion, Serial correlation test, Heteroscedasticity test, and Jarque-Bera test were used for data analysis. The study revealed that the lag of environmental sustainability, industrialization, and economic expansion affects CO2 emissions in the short term by 0.516%, 0.153%, and -0.179% respectively. The study further shows that urbanization increases CO2 emissions by 1.02 percent in the long run, while globalization reduces CO2 by 0.298 percent, which consequently improves environmental sustainability. ECM (Error Correction Mechanisms) suggests 54% speed adjustment of environmental sustainability within one year after shocks on explanatory variables. The study further recommends an appropriate policy that will encourage conservation of the environment, monitoring and evaluation, technology and innovation of green-friendly energy sources, workshops, and community inclusion on matters concerning the environment